The Hong Kong Jockey Club (HKJC) has warned that Hong Kong’s high betting duties and limitations on the number of sports for licensed betting – including a recent delay to the legalization of basketball betting – is opening the door for illegal operators to dominate the local market.
While HKJC reported Wednesday a 3.6% year-on-year increase revenue to HK$50.8 billion (US$6.48 billion) in the year ended 30 June 2026 – aided by strong betting around the football World Cup – it also highlighted illegal gambling as an ever-expanding threat that it said is enabled by the tax and licensing restrictions imposed upon the city’s only licensed operator.
On the betting duty, the HKJC said the exceedingly high rates, which were increased by the government in 2023 to address a budget shortfall, is “eroding the competitiveness of the Club’s licensed wagering products.”
It stated, “Betting duty on racing is up to 75%, while football betting is taxed at 50% of gross margin.”
On the limited offerings available, HKJC noted that it offers just two sports for licensed betting – racing and football – compared with up to 60 for illegal operators, including illegal betting on basketball.
As reported by IAG, the government had approved the addition of basketball but abruptly paused the plan in April, citing concerns around the the rapidly rising prediction markets in the United States and the negative spillover effects thye could generate.
“The Club fully respects the HKSAR Government’s decision to pause the granting of a licence for regulated basketball betting,” HKJC stated. “But with no legal channel available, the illegal market on basketball will continue to expand and along with it the social and criminal damage to the community.”
Despite its concerns, HKJC reported Wednesday record wagering and lottery turnover of HK$331.7 billion (US$42.3 billion) in FY26, which generated HK$29.3 billion (US$3.35 billion) in betting duty and profits tax – accounting for 6.4% of total taxes collected by the Inland Revenue Department for the assessment year.
It said that total racing wagering turnover rose 3.6% year-on-year to HK$143.3 billion (US$18.3 billion), generating gaming revenue of HK$19.9 billion (US$2.54 billion), while football betting was also up 3.6% to HK$179.0 billion (US$22.8 billion), generating gaming revenue of HK$22.6 billion (US$2.88 billion).
“The HKSAR Government’s support for new bet types was crucial in helping the Club compete against the illegal market, alongside the introduction of new league competitions, this summer’s global football tournament and the outstanding performance of the Club’s trading team aided by world-class risk management technology,” it said.
Mark Six lottery turnover for FY26 grew 4.2% to HK$9.4 billion (US$1.20 billion), generating gaming revenue of HK$4.3 billion (US$548 million).
RelatedPosts
